BILL NUMBER: AB 2621	CHAPTERED  09/30/00

	CHAPTER   1031
	FILED WITH SECRETARY OF STATE   SEPTEMBER 30, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 30, 2000
	PASSED THE ASSEMBLY   AUGUST 31, 2000
	PASSED THE SENATE   AUGUST 29, 2000
	AMENDED IN SENATE   AUGUST 7, 2000
	AMENDED IN SENATE   JUNE 19, 2000

INTRODUCED BY   Assembly Member Rod Pacheco

                        FEBRUARY 25, 2000

   An act to amend Section 21541 of, and to add Section 21541.5 to,
the Government Code, relating to preretirement death benefits.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2621, Rod Pacheco.  Preretirement death benefits.
   The Public Employees' Retirement Law provides for a preretirement
special death benefit that is calculated, in part, as a fraction of
the deceased member's final compensation at the time of the injury or
disease causing death.  Under that law, children of deceased members
who are eligible for the special death benefit lose that eligibility
upon adoption.
   This bill would provide that, for purposes of calculating or
recalculating the special death benefit, as specified, the deceased
member's final compensation shall be deemed to increase when the
compensation is increased for his or her final job classification and
membership category, as specified.  The bill would also delete the
provision that terminates a child's eligibility for benefits upon
adoption and would restore those benefits, as specified, for children
whose eligibility was previously terminated due to adoption.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 21541 of the Government Code is amended to
read:
   21541.  The special death benefit consists of the following:
   (a) An amount equal to and derived from the same source as the
basic death benefit exclusive of the contributions from which the
annuity provided under subdivision (d) is paid.
   (b) An amount sufficient, when added to the amount provided under
subdivision (a), to provide, when applied according to tables adopted
by the board, a monthly death allowance equal to one-half of his or
her final compensation in the membership category applicable to him
or her at the time of the injury, or the onset of the disease,
causing death, as adjusted pursuant to subdivision (e), which amount
shall be payable to the surviving spouse to whom he or she was
married either continuously for at least one year prior to death, or
prior to sustaining the injury or disease resulting in death, as long
as the surviving spouse lives; or, if there is no surviving spouse
or if the spouse dies before all children of the deceased member
attain the age of 22 years, to his or her children under the age of
22 years collectively until every child shall have died, married, or
attained the age of 22 years.  However, no child shall receive any
part of the allowance after marrying or attaining the age of 22
years.  The increases described in this section shall only apply to
spouses of deceased members who would have been less than 50 years of
age, if still living on January 1, 2001.
   (c) During the lifetime of the surviving spouse, an additional
percentage of the death benefit allowed by this section, exclusive of
the annuity under subdivision (d), shall be paid to the spouse of a
member who is killed in the performance of his or her duty or who
dies as a result of an accident or an injury caused by external
violence or physical force, incurred in the performance of his or her
duty, for each of his or her children during the lifetime of the
child, or until the child marries or reaches the age of 22 years, as
follows:  for one child, 25 percent; for two children, 40 percent;
and for three or more children, 50 percent.
   (d) An annuity that is the actuarial equivalent, assuming monthly
payments for life to the surviving spouse, of the deceased's
accumulated additional contributions at the date of his or her death,
plus his or her accumulated contributions at that date based on
compensation earned in any membership category other than the
category applicable to him or her at the time of the injury or the
onset of the disease causing death.
   (e) For purposes of this section only, the deceased member's final
compensation shall be deemed to increase, and the death benefit
under subdivision (b) shall be increased correspondingly, at any time
and to the extent the compensation is increased for then-active
members employed in the job classification and membership category
that was applicable to the deceased member at the time of the injury,
or the onset of the disease, causing death.  The deceased member's
final compensation shall be deemed to be subject to further increases
hereunder only until the earlier of (1) the death of the surviving
spouse or (2) the date that the deceased member would have attained
the age of 50 years.
   (f) Monthly allowances shall be adjusted annually for time
commencing on the first day of September and effective with the
monthly allowance regularly payable on the first day of the October
beginning with October 1, 2001.  The employer of the deceased member
shall be responsible for reporting and certifying top range salary
rates by the first day of July, beginning with July 1, 2001.
   (g) If the surviving spouse does not have custody of the member's
children, the additional amount payable pursuant to this section
shall be payable to the person having custody of the children for
each child during the lifetime of the child, or until the child
marries or reaches the age of 22 years.
   The computation for time prior to entering the membership category
applicable to the deceased at the time of the injury, or the onset
of the disease, causing death shall be based on the compensation
earnable by him or her in the position first held by him or her in
that category.
   "Spouse," for purposes of this section, means a wife or husband.
   This section shall apply to all contracting agencies and to the
employees of all contracting agencies.
   (h) For purposes of Section 21313, the base allowance shall be the
allowance as increased under this section.  The base year for annual
adjustments of allowances increased by this section shall be the
calendar year preceding the year of the adjustment.
   (i) The amount of the death benefit payable pursuant to this
section on and after January 1, 2001, with respect to any member who
died prior to that date, shall be recalculated on and after that date
pursuant to subdivision (e).
  SEC. 2.  Section 21541.5 is added to the Government Code, to read:

   21541.5.  Any child whose benefits under Section 21541 were
terminated upon his or her adoption, pursuant to that section as it
read prior to January 1, 2001, shall have those benefits restored as
follows:
   (a) The child shall receive a lump-sum payment in the amount that
would have paid, if he or she had not been adopted, from the date of
adoption to the earlier of (1) the date his or her eligibility for
benefits under Section 21541 would have otherwise terminated had he
or she not been adopted or (2) January 1, 2001.
   (b) If on January 1, 2001, the child is eligible for benefits
under Section 21541, he or she shall receive benefits from and after
that date pursuant to Section 21541.
